1. At the end of January 2005 (its first month of operations in the dry cleaning business), Botkin Corporation was low on cash and needed a loan. The bank requested a balance sheet as of January 31, 2005. The following information was available:

Accounts Payable $ 9,000

Account Receivable 50,000

Buildings 170,000

Land 45,000

Stockholders Equity (Owners Equity) 180,000

Salaries Payable 5,000

Equipment 39,000

Notes Payable 130,000

Cash ?

Required: Prepare a balance sheet for Botkin Corporation as of January 31, 2005?

2. Which of the following statements are true for financial accounting purposes?

1. Assets = liabilities + Stockholders Equity _____________________
2. Stockholders Equity = Liabilities + Assets _____________________
3. Liabilities = Assets + Stockholders Equity _____________________
4. Liabilities Stockholders Equity = Assets _____________________
5. Stockholders Equity = Assets Liabilities _____________________
6. Liabilities = Assets - Stockholders Equity _____________________
7. Assets = Stockholders Equity Liabilities _____________________

3. Which of the following equations is not true?

1. Assets = Liabilities - Stockholders Equity ____
2. Assets = Liabilities + Stockholders Equity ____
3. Assets Stockholders Equity = Liabilities ____
4. Assets Liabilities = Stockholders Equity ____
5. Assets Liabilities Stockholders Equity = Zero _____

4. The basic accounting equation for a corporation may be expressed as _____________ = ________________ + ________________
5. Net income is the excess of ______ over ________.
6. ____________ are defined as probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.